Why are Wall Street banks posting record profits amid Iran war?
The US-Israel-Iran war has roiled the global economy since Feb. 28, but the resulting market volatility has boosted trading profits for some.
Wall Street’s largest banks posted some of their highest quarterly profits on record in the first three months of the year despite the war in Iran, which has been upending global markets since Feb. 28.
What happened: On Tuesday, JPMorgan reported a net income of $16.5 billion, up from $14.6 billion a year ago, marking its second-best quarter ever.
Meanwhile, Citigroup’s profits for the first quarter rose 42% year-on-year to more than $5.8 billion, or $3.06 a share, beating expectations. The US lender’s revenues were also better than anticipated: up 14% to $24.6 billion, its highest quarterly revenue in a decade.
Wells Fargo’s profits climbed 7%, bolstered by stronger trading revenue.
